MIRA INFORM REPORT

Report Date :

02.12.2008

IDENTIFICATION DETAILS

Name :	Tontec Precision TOOLING (Suzhou) Co., Ltd.
Registered Office :	No. 663, Changjiang Road, Suzhou New Area, Suzhou, Jiangsu Province, 215129 Pr
Country :	China
Financials (as on) :	31.12.2007
Date of Incorporation :	26.06.2002
Com. Reg. No.:	320500400012927
Legal Form :	Wholly Foreign-Owned Enterprise
Line of Business :	Researching, Developing, Manufacturing and Selling Precision Molds and Injection Products.

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 650,000
Status :	Good
Payment Behaviour :	No Complaints
Litigation :	Clear

name & address

Tontec Precision TOOLING (Suzhou) Co., Ltd.

NO. 663, CHANGJIANG ROAD, SUZHOU NEW AREA,

SUZHOU, JIANGSU PROVINCE, 215129 PR CHINA.

TEL: 86 (0) 512-66613288 FAX: 86 (0) 512-66619969

EXECUTIVE SUMMARY

INCORPORATION DATE : JUNE 26, 2002

REGISTRATION NO. : 320500400012927

REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise

CHIEF EXECUTIVE : MR. CAI RUIHUI (CHAIRMAN)

STAFF STRENGTH : 1,400

REGISTERED CAPITAL : USD 11,990,000

BUSINESS LINE : R&D, MANUFACTURING

TURNOVER : CNY 268,340,000 (AS OF DEC. 31, 2007)

EQUITIES : CNY 91,870,000 (AS OF DEC. 31, 2007)

PAYMENT : AVERAGE

RECOMM. CREDIT RANGE : UP TO USD 650,000 (periodical review)

MARKET CONDITION : competitive

FINANCIAL CONDITION : fairly STABLE

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION : AVERAGE

EXCHANGE RATE : CNY 6.87527 = US$ 1

Adopted abbreviations:

ANS - amount not stated

NS - not stated

SC - subject company (the company inquired by you)

NA - not available

CNY - China Yuan Renminbi

Note: SC is also known as Tontec Precision Molding (Suzhou) Co., Ltd.

SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on June 26, 2002.

Company Status: Wholly foreign-owned enterprise

This form of business in PR China is defined as a legal person. It is a limited co. established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investor may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.

SC’s registered business scopes includes researching, developing and manufacturing precision molds and related products, electric tools and insulation moldings for electric appliances, injection plastic products (excluding limited or prohibited items); selling self-made products; supplying related after-sale services and technology services.

SC is mainly engaged in researching, developing, manufacturing and selling precision molds and injection products.

Mr. Cai Ruihui has been legal representative and chairman of SC since 2005.

SC is known to have approx. 1,400 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Suzhou. Our checks reveal that SC owns the total premise about 23,000 square meters.

SC is not known to host website of its own at present.

Changes of its registered information:

Date of change	Item	Before the change	After the change
2008	Registration No.	011650	320500400012927

MAIN SHAREHOLDERS:

Name % of Shareholding

Golden Bauhinia Investment Company Limited (Hong Kong) 100

l Legal representative, chairman and general manager:

Mr. Cai Ruihui, HK citizen, in his 30’s with university education He is currently responsible for the overall management of SC.

Working Experience(s):

From 2005 to present Working in SC as chairman, legal representative and general manage.

SC is mainly engaged in researching, developing, manufacturing and selling precision molds and injection products.

Main Products: hardware parts, precision molds, injection plastic products, etc.

SC sources its materials 50% from domestic market, and 50% from overseas market, mainly Hong Kong. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly Japanese, European and American market.

The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.

*Major Supplier:

============

Shanghai Huachang Trade Co., Ltd

*Major Customer:

=============

Suzhou Canon

SC is not known to have any subsidiary at present.

Overall payment appraisal :

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment and our debt collection record concerning SC.

Trade payment experience : SC’s suppliers declined to make any comments.

Delinquent payment record : None in our database.

Debt collection record :No overdue amount owed by SC was placed to us for collection within the last 6 years.

Agriculture Bank of China Suzhou Branch New Area Sub-branch

AC#547601040006434

Relationship: Normal.

Balance Sheet

Unit: CNY’000

	as of Dec. 31, 2006	as of Dec. 31, 2007
Cash & bank	10,580	9,390
Inventory	46,470	75,140
Accounts receivable	39,160	71,060
Advances to supplies	1,160	9,480
Other receivables	160	3,030
Prepaid expenses	200	230
Other current assets	10	0
	------------------	------------------
Current assets	97,740	168,330
Fixed assets net value	152,670	168,360
Projects under construction	0	650
Long-term investments	0	0
Long-term deferred expenses	710	4,030
Intangible assets	3,840	3,710
Other assets	0	20
	------------------	------------------
Total assets	254,960	345,100
	=============	=============
Short loans	18,760	20,000
Accounts payable	88,160	119,230
Advances from customers	7,130	34,580
Accrued payroll	650	0
Welfares payable	0	0
Taxes payable	1,060	1,210
Surcharge payable	10	10
Other Accounts payable	330	450
Accrued expenses	0	1,200
Other current liabilities	20	10
	-----------------	-----------------
Current liabilities	116,120	176,690
Long term liabilities	59,160	76,540
	------------------	------------------
Total liabilities	175,280	253,230
Shareholders equities	79,680	91,870
	------------------	------------------
Total liabilities & equities	254,960	345,100
	=============	=============

Income Statement

Unit: CNY’000

	as of Dec. 31, 2006	as of Dec. 31, 2007
Turnover	159,580	268,340
Cost of goods sold	142,670	243,440
Taxes and additional of main operation	70	110
Income from other operations	100	0
Sales expense	1,720	4,040
Management expense	14,870	15,430
Finance expense	-2,300	-6,720
Non-operating income	0	170
Non-operating expense	160	10
Operation Profit	2,480	12,180
Less: profit tax	0	0
Net profit	2,480	12,180

Important Ratios

=============

	as of Dec. 31, 2006	as of Dec. 31, 2007
*Current ratio	0.84	0.95
*Quick ratio	0.44	0.53
*Liabilities to assets	0.69	0.73
*Net profit margin (%)	1.55	4.54
*Return on total assets (%)	0.97	3.53
*Inventory /Turnover ×365	107 days	103 days
*Accounts receivable/Turnover ×365	90 days	97 days
*Turnover/Total assets	0.63	0.78
* Cost of goods sold/Turnover	0.89	0.91

PROFITABILITY: FAIRLY GOOD

l The turnover of SC appears fairly good in its line, and it increased in 2007.

l SC’s net profit margin is fairly good, and it was rising in 2007.

l SC’s return on total assets is average in both two years, and it was rising in 2007.

l SC’s cost of goods sold is average, comparing with its turnover.

LIQUIDITY: FAIR

l The current ratio of SC is maintained in a fair level in both two years.

l SC’s quick ratio is maintained in a fair level in both two years.

l The inventory of SC appears fairly large.

l The accounts payable of SC appears large.

l SC’s short-term loan is in an average level.

l SC’s turnover is in a fair level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

l The debt ratio of SC is fairly high

l The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable.

SC is considered large-sized in its line with fairly stable financial conditions. The large amount of accounts payable could be a threat to SC’s financial condition. The given credit amount would appear to be beyond SC’s capacities, while a credit line up to USD 650,000 is recommended upon a periodical review basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.52
UK Pound	1	Rs.75.08
Euro	1	Rs.63.72

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions